Canada to tax Bitcoin transactions

Canada to tax Bitcoin transactions - TV Get short URL Published time: April 27, 2013 10:39 Tweet Share on Tumblr Tags Currencies , Commodities , Internet , Information Technology , Canada Canadians using bitcoins, the decentralized crypto-currency that recently went mainstream, must report their incomes and pay taxes as with other earnings, Canada's Revenue Agency (CRA) confirmed following a media request. The issue was clarified in response to a letter by the Canadian Broadcasting Corporation (CBC) ahead of the country's tax season. Two separate tax rules are applicable to the electronic currency, CRA spokesperson Philippe Brideau told CBC in an email. When bitcoins are used as money to buy goods and services, the transaction is treated as barter and is taxable as such. When they are traded at a market for profit, they may be taxed as capital gains. "When bitcoins are bou...